With a constant keen eye and understanding of the profile of their shoppers, ROBINSONS wants to tap on their existing wealth of knowledge to determine the strategic and inventory planning of their new fashion and apparel collection, as well as to develop more tactical and relevant promotional activities and marketing campaigns to enhance the shopping experience of their customers.
ROBINSONS turned to IBM SPSS Predictive Analytics to meet their goals of:
- Enhancing the ‘Robinsons Customer Experience’ by providing customers with relevant product bundles
- Improving the loyalty of existing ROBINSONS card members by providing information for targeted promotional campaigns and marketing activities
- Extending the loyalty program to attract and acquire new customers, and retain existing ROBINSONS card members for potential products roll out
To achieve these objectives, ROBINSONS leveraged data mining models generated from IBM SPSS Modeler, an industry leading solution from SPSS. Improving Product Bundle Promotions with Association Model To drive greater customer intimacy and loyalty, it is critical for retailers to proactively recommend the right product bundles to the different groups of customers. Using IBM SPSS Modeler, ROBINSONS is able to develop an Association Model to analyze data from historical purchase records (Store, Department, Class/Brand, Prime Group, Quantity, Sales Amount) to demographic data such as Card type, Occupation, Gender, Age and Marital Status. The Association Model uncovers cross/associations between two or more Departments (such as Toiletries and Bedding), even down to the Class level (like Fine China and Bedroom Textiles). The association rules that are generated from the data mining model revealed that over 97% of customers who purchased from a particular department also bought 3 specific goods from the other departments. None of these customers fall within the same ‘Prime Group’. This demonstrates that the customer segment shops at ROBINSONS because the store addresses his or her varying domestic needs, rather than by just a specific Prime Group.
“In our continual efforts to become a uniquely inspirational 21st century retailer, we strive to provide a retail experience which exceeds our customer expectations in product range, quality and value. The predictive insights garnered from IBM SPSS Modeler have deepened our understanding of our customers’ preferences and behavior, enabling us to roll out more targeted promotional campaigns and relevant product bundles that enhance the shopping experience of our customers.”
Assistant General Manager, Cards and Corporate Sales Department Robinson & Co. (Singapore) Pte Ltd